Never ones to accept failure as an option, Cook County implemented an enforcement informant program. (Try saying that three time fast while puffing on a Marlboro and holding a martini in each hand.) They began paying out “rewards” of up to $1,000 for people who would report under the radar cigarette sales to the police and issuing massive new fines to local stores dodging the tax code. This failed to materially affect the tax revenue numbers, but it did manage to soak the taxpayers for tens of thousands in snitch fees while vacuuming $1.6M out of local small to medium businesses in fines.

Other smokers began moving to a “roll your own” plan, purchasing bulk tobacco, paper tubes and rolling machines. But state and local governments, such as in Wisconsin, have caught on to that game and are rapidly jacking up the taxes on those products as well.

In New York — noted for its annual competition with Massachusetts to be the highest taxed state in the nation — the combined list of local, state and federal taxes already have a pack of premium brand smokes going for more than eleven dollars in the Big Apple. Some upstate residents have taken to crossing over the border into Pennsylvania for their purchases, robbing the state of its cut of the pie entirely. But an increasing number are simply giving up on any pretense of living within the bounds of the law and are purchasing black market smokes off the back of the truck from smugglers. One recent report found that the Empire State was losing out on as much as $20M per month in tax revenue from this new age of prohibition era tactics.

None of these stories bode well for Governor O’Malley and his dreams of propping up his state’s floundering finances on the backs of smoker and drinkers. It’s an endless shell game, always seeking that perfect golden goose to fleece, but Maryland is rapidly running out of geese. Perhaps it’s time to take a page from the books of neighboring states and begin steadily driving down costs. A less expensive climate might begin to slow down the exodus of the wealthy and attract businesses to hire Maryland’s unemployed workers.

Who knows? A few of them might wind up making enough money to be able to afford a case of beer and a pack of Kools.

You’re still waiting for them to start learning from experience? At this point, I’m beginning to wonder how dumb *you* are (I already know about them…). They *NEVER* learn…in their minds, higher taxes *always* generate more revenue. And taxes can *never* be too high!

I see many articles written by conservatives, trying to argue logically about liberals. When will you conservatives learn that logic has nothing to do with their thinking. In this particular case, you ask “when will they learn?”. Your unstated assumption is that they don’t know what they are doing. But they know perfectly well that they won’t raise as much as they claim. For them, it’s all about projecting a perception that they are effectively dealing with a problem – in this case, a budget shortfall. They’re accomplishing exactly what they set out to do, which is maintain their power.

Very good – it is not about educating liberals with the “how to” of doing the right thing (but how fervently we wish that were possible!!!!!). It is all about the perception that liberals somehow care that the credit card is maxed out, whimpering that “we need more money” – yet all the time it boils down to their own job security.

One of the lying thief O’Malley’s Demorat predecessors in the governor’s mansion (Donald Scaeffer) used to send undercover Maryland State Police across the state line to Harper’s Ferry, W.Va and watch for Maryland motorists buying discount cigarettes there, then stopping them as they crossed over into “Taxachusetts on the Chesapeake”.

When will politicians learn that raising “sin taxes” brings in less revenue than expected?
Never, as DWN points out above. Rick Happ also makes a great point that arguing logically with liberals is a futile pursuit. It takes no thinking, no logic, no reason to be a liberal; it only requires emotion and feeling. “It feels good to raise taxes on tobacco & alcohol. After all, they’re not good for you and they’re not necessities.” But the goal for liberals is not to improve people’s lives – it is to maintain power, also as Happ notes. The liberal playbook: 1. Create a crisis. 2. Offer a ‘solution’ to the crisis. 3. Put the solution into effect. 4. Be nowhere around when the ‘solution’ not only doesn’t work, but makes a bigger mess of things than before. 5. Re-appear to offer a ‘better’ solution to the now-bigger crisis.

Last night on Hannity, Sean repeatedly asked the liberal on the panel should liberals be fired when they cross the line (as was Hank Williams from MNF) – he hem-hawed, tried to change the subject, and ultimately never gave a coherent answer. It was a beautiful verbal beatdown of a liberal moment.

With Maryland being such a small state to begin with, you can, literally drive from the north end to the south end in about an hour, even cracking down on boot leg cigarettes and alcohol won’t help too much.

The Citizens of Maryland are more than welcome to come my home state of Virginia, to Washington DC, or go north in to Pennsylvania to buy their cigarettes and alcohol there.

Same thing happened in the UK and now there is a huge black market in smuggled cigarettes and tobacco, a lot of it fake made in China with who knows what content. The packs are very convincing and they don’t care who they sell to, so much for protecting children. I stopped buying here when they forced the smoking ban on pubs but fortunately live near the Channel and can pop over the Belgium where they are a lot cheaper.

What a hoot! All the points made above are correct, but here’s one the idiots in charge finally DID recognize. They HAD to rebrand “sin” tax –> “lifestyle” tax, because everyone has been catching onto several points. 1) this is a hella regressive tax, and 2) if you’re raising revenue from people’s bad behvr. (I guess assuming they’ll stop said behvr.) then where will those revenues come from?! Do people stop being “bad” people? Nah, they just cross state lines, go black market/underground, or move to something NOT being taxed that’s prob. even worse for ‘em.

It’s the liberals fav. way to go about things: proclaim the moral high road by trying to control every facet of our litte lives (you’re too stupid to realize what’s bad for you, so we’ll take care of that AND teach you a lesson), and steal our money for their latest shenanigan. Endless loop & just as pointless …

It isn’t just “lifestyle tax increases” that fail to bring in as much revenue as promised, it’s all tax rate increases. Virtually none of them bring in as much revenue as promised because they use the failed static analysis technique to make their predictions. In static analysis, a 5% increase in tax rates should result in a 5% increase in revenues. Simple, but wrong because the people aren’t at stupid as the politicians expect. People change their behavior as a result of rate increases, be they in income taxes or “lifestyle taxes.” People will act in their own best interest and do what they can to reduce their tax burden.

First they came for the drinkers (you know how it goes, with a hat tip to Pastor Niemoller), and then for the smokers, and then for the trans fats and then for the salt shakers…. and then they came for me and there was no one left.

Some years ago, Kyle Mills wrote a novel, “Smoke Screen”. The thesis was that the tobacco companies just stopped making cigarettes. Eventually, the feds, states, cities saw the light of no tobacco tax revenue. Maybe that might work.

surprise that O”Malley et al have not proposed the legalization of prostitution and state control of the income from the oldest profession. It would on paper bring in the millions that the American politicos need to feed their dirty habit of spending and stealing. Since morality and American politicians are complete opposites there should be no objections from the unwashed masses and their American master class in promoting the sale of human flesh for the purpose of keeping the corrupt empire going.

At last someone has given me a good reason to go to NYC, the sorriest city in North America, except for Washington, D.C. Eleven dollar a package cigarettes. I can buy them black market in Indiana for less than $2 (the premium butts cost $5.40) and sell them in NYC for $5 or $6? Hmmmm.

Good luck with that. At current fuel prices the cost of traveling to NYC from Indiana would more than consume your markup. Kinda like driving 50 miles to save a nickel a gallon on gas. (In fact, this site will tell you whether driving to a cheaper gas station is worth it.) Those black-market cigs currently in the Rotten Apple must have come from a short distance to make selling them below the taxed price profitable.